Boeing downplays trade war, politics in Airbus spat

MattAndrejczak

SAN FRANCISCO (CBS.MW) - Boeing CEO Harry Stonecipher on Monday downplayed a U.S.-European trade war and presidential politics in the on-going spat over subsidies Boeing and its rival Airbus receive to make commercial aircraft.

"No one is looking to start a trade war," Stonecipher told reporters in a conference call.

Last week, the U.S. filed a complaint with the World Trade Organization to end the Airbus subsidies. The EU fired back, making similar claims about Boeing
BA, +0.39%

Both sides claim each company has been given advantageous government financing and tax breaks to make aircraft.

The timing of the U.S. complaint sparked EU officials and some political observers to question whether it was a move by President Bush to win reelection votes. See full story.

Boeing, which Airbus surpassed last year as the world's commercial airplane maker, brought its problems with Airbus to U.S. trade officials last March, Stonecipher said.

"It's about the future, not the past," he said. "This will not go away after the election."

Stonecipher said he visited with European government officials as well as Airbus executives last month in hopes of settling the long simmering dispute.

The U.S. launched its complaint after it was unsuccessful in renegotiating a 1992 pact that set limits on government support for aircraft.

Under WTO rules, U.S. and EU trade representatives now have 60 days to start negotiations to find a solution to the dispute on their own. If they fail to come to agreement in 60 days, the Geneva-based trade body will appoint an independent panel to rule on the matter.

Trade analysts say it's highly unlikely the two parties will come to a deal.

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